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Kaplan Company Inc. uses a normal costing system and estimated its overhead costs for the current year to be as follows: fixed, $725,000; variable, $2 per unit. Kaplan Company is expected to produce 100,000 units during the year. During the year, the company incurred overhead costs of $925,000 and produced 100,000 units. find out the rate to be used to apply manufacturing overhead costs to products.

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